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Old 12th March 2010, 13:54   #16
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CAR PRICES : TRIPLE WHAMMY
After Excise, in karnataka (VAT +Road tax), BS-IV implementation in offing, here is one more bad news as reported in Rediff
Car prices set to rise again, courtesy steel: Rediff.com Business
Car prices set to rise again, courtesy steel

Prospective car buyers may have to contend with another price increase with the steady rise in the cost of steel, a critical raw material.

All car makers passed on the two per cent hike in excise duty to consumers soon after the Budget.

The steel cost increase has put the industry in a tizzy. Japanese steel mills, the benchmark for price negotiations, had settled coking coal contracts at $200 (Rs 9,100) a tonne compared with $129 (Rs 5,800) last year.

The forecast for iron ore is $100 (Rs 4,550) compared with about $62 (Rs 2,800) last year, which implies the cost of production is set to touch $560 (Rs 25,482) a tonne, $70 (Rs 3,185) less than the selling price in the domestic market for hot rolled coil, a key flat steel product.

The steel industry is no mood to absorb the cost with the revival in demand after a sluggish year. Ankit Miglani, director (commercial) Uttam Galva Steels [ Get Quote ], said prices could increase by $50 (Rs 2,275) next month and $100 over the quarter.

Car makers say it is only a matter of time before the rise in the price of steel is passed on to the consumers.

"Till now, the cost increase has been absorbed, but I don't think manufacturers will be able to sustain this in the long term. Since manufacturers have not increased prices (except due to the excise duty rise), they can only absorb it to a certain extent.

"Right now, they are at a threshold. So, even if steel prices rise by 10 per cent, there will be an increase in car prices," an official from General Motors [ Images ] says.

But, steel makers argue automobile manufacturers are just looking for an excuse to pass on the cost. A steel-based car contains less than a tonne of steel.

Auto manufacturers with domestic operations suggested, too, that the improvement in metal prices could be reflected in the cost of vehicles.

"There have been indications that a substantial rise could be expected in steel prices. As of now, we have not revised our prices but might have to, looking forward," an official from the Light Commercial Vehicle section of Tata Motors [ Get Quote ] points out.

Although international majors remain tight-lipped about whether car prices would be revised, they are expecting input costs to escalate.

A spokesperson for Daimler AG, which produces cars and trucks under the brands of Mercedes-Benz and Maybach, among others, says, "Following the historical highs of 2008, the prices of many raw materials at first fell significantly in 2009.

"Assuming that the worst of the economic crisis is now over, we expect prices to rise again with the projected revival of the global economy and price fluctuations will also increase. This trend is already apparent in the prices of steel, precious metals and oil, for example,
cheer up buyers
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Old 12th March 2010, 14:03   #17
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Quote:
Originally Posted by karpusv View Post
What this means is, vehicle registered in the above mentioned cities from April'2010 onwards, will have to be Euro4 compliant.
So in order to cater to such customers, manufacturers will have to provide Euro4 compliant vehicles.
Does this means that BS3 vehicles can not be re-registered (Change in Registration Number) within Metro but transfer of ownership within Metro city (Same city where the car is registered or any other city) will not have any problem.
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Old 12th March 2010, 14:13   #18
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Originally Posted by Akhil@Bengaluru View Post
Does this means that BS3 vehicles can not be re-registered (Change in Registration Number) within Metro but transfer of ownership within Metro city (Same city where the car is registered or any other city) will not have any problem.
As of now the regulation only binds car manufacturers and for Newly registered vehicles only.
It is their legal obligation to manufacture and sell Euro4 vehicles in the Tier-1 cities.

This currently may not be applicable to already registered vehicles in cases like vehicle transfers, re-registration etc.

If anyone here has information otherwise, please advice.
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Old 12th March 2010, 15:45   #19
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Re-registration of a BSIII vehicle will not be allowed in a state if they've already implemented BSIV, though resale is possible in the same state.

Do note that in a city, you may still register in the sub-urban RTOs which would still fall in the BSIII part, explaining why manufacturers and dealers seems to care less.
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Old 12th March 2010, 22:30   #20
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the BS-IV implementation has lot of bearing on the fuel supplies. Unless fuel companies start supplying BS-III fuel across the countries and BS-IV in metros, BS-IV will be difficult to implement.
Also all new vehicles (BS-iV) should be wary of the fuel they need to refuel outside the metros.
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Old 25th March 2010, 12:59   #21
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Unhappy Indigo CS?!

Any idea if Indigo CS (had shortlisted CS GLS) be available in BS4?? A friend of mine told me that that Indigo CS will be sold with BS3 but registered outside Metros (I live in Chennai).

Will this be a problem?? Should I rethink my choice?? Help.
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Old 25th March 2010, 14:00   #22
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Angry Fuel price hike to meet BS IV norms

To add to the already existing woes, the fuel price hike to meet the BS IV norms is to be effected from April 1. Which means that petrol becoems costly by 41 paise per litre and diesel by 26 paise. But this hike would be applicable only in 13 major cities as cited by the leading newspaper today. Euro-IV petrol, diesel may go up by 40p & 26p- Policy-Economy-News-The Economic Times
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Old 25th March 2010, 14:10   #23
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I have booked a Toyota Innova and am awaiting delivery. I have also waited to see what would happen to the Innova/corolla BSIV implementation, however nobody seems to have a clear answer.

I guess BSIV is more to do with the quality of fuel and not much for vehicles, except maybe for a pollution indicator.

Because Toyota seems relaxed, I guess either their vehicles are BSIV compliant or they may "make" them so.. After all, how are the users supposed to find out whether the vehicle is really a BSIV or III etc?

This is just another way of increasing prices - I guess.
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Old 25th March 2010, 14:18   #24
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I hear that even in BS-IV compliant vehicles a warning light controlled by the Lambda Sensor will be required to signal is emissions (oxygen content of exhaust to check it) goes out of limits. Price increase will depend on the manufacturer but expect about 12-15k for a D segment car.
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Old 25th March 2010, 14:34   #25
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IMO, the new registration rules will only be applicable for the new cars (BS IV) and
old cars will have no problem for resale or transfer (as in the present status)?
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Old 25th March 2010, 16:15   #26
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Default Nano Price Hike for BS-IV

Got call from Tata Motors saying that Nano price will go up by 6000 to 7000 in Pune due to BS-IV implementation. ( After 1st April 2010 )
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Old 25th March 2010, 18:28   #27
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Irrespective of car price hike, there is already proposal from oil ministry to increase price of petrol and diesel for in 13 cities to recover cost of upgrading oil refineries. Source: TOI article (25-Mar-10)
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Old 25th March 2010, 19:30   #28
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BS-IV Fuel price hike
In all 13 metro, the BS-IV implementation and dealer margin hike, the fuel price is being hike from April,1,2010.
Petrol @37 paisa and diesel@27 paise.
looks like 2010 is year of hike for all things related to automobiles.
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Old 26th March 2010, 14:21   #29
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I hear that a similar hike may be coming in the rest of the country. I suspect the it is due to the upgrading of BS-II to BS-III all over the country. The spec change from BS-III to BS-IV is minimal.

By all accounts the PSU oilcos have persuaded the govt to do a phased implementation of BS-III fuels as they (normal PSU behaviour) have not been able to upgrade their refining capacity. I thought five years notice would be enough.
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Old 27th March 2010, 12:15   #30
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Quote:
Originally Posted by bullock-Car View Post
Double whammy for auto buyers
Well, it's already a quadruple whammy for new car buyers: Budget, then Euro IV, then steel input rates and now fuel prices to go up too!

Quote:
Originally Posted by karpusv View Post
This currently may not be applicable to already registered vehicles in cases like vehicle transfers, re-registration etc.
I believe it is. To put it in the simplest way, take Mumbai as an example (a Euro IV city). From the 1st of April:

a) If an older / used Euro 3 car is already Mumbai registered, transferring to the next owner within Mumbai is not a problem.

b) However, say the older / used Euro 3 car is from Pune. The Mumbai RTO will not allow this car to be transferred to a Mumbai registration from April 1st .
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